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Logistic and International Marketing

Collazos de la hoz María Carolina code: 1911027720,

Cuervo Quiroga Astrid Carolina code:100232401,

Gamboa Ardila Tulio Iván code:1821020900,

Palacio Daza Alejandra Juliet code:1721022914,

Romero Campos María del Pilar code: 100239401

Faculty of Business, Management and Sustainability, University Politécnico

Grancolombiano

Profe. Sandra Milena Chica Sierra

October 19 th of 2021
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Table of Contents

Introduction 4

Product 5

What is a Thermocouple? 5

What is the thermocouple used for? 5

Market Study 6

Justification of the chosen country 6

Company Thermo Comp. 8

Who 's ThermoComp? 9

What do we offer? 9

What 's our goal? 10

Distribution strategy and distribution channel. 13

MARKETING STRATEGY 16

Price: 16

Publicity Strategy at Thermocomp: 19

Packing and Packaging 21

Waxed kraft Paper for packing: 23

Customer type 23

References. 25
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Table of Illustration

Figure 1 .............................................................................................................................. 5

Figure 2 .............................................................................................................................. 7

Figure 3 .............................................................................................................................. 7

Figure 4 .............................................................................................................................. 8

Figure 5 ............................................................................................................................ 10

Figure 6 ............................................................................................................................ 11

Figure 7 ............................................................................................................................ 11

Figure 8 ............................................................................................................................ 12

Figure 9 ............................................................................................................................ 14

Figure 10 .......................................................................................................................... 17

Figure 11 .......................................................................................................................... 18

Figure 12 .......................................................................................................................... 21
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Introduction

All companies that want to enter the world market, must define a good marketing plan

and focus on the necessities of customers belonging to the market in which the company will be

present. The objective of this study plan is to learn the importance of designing an international

marketing plan.

This document was created as a study that allows us to get the necessary information

about the demands of the selected market and the different types of products.

Type of product: Develop an international marketing study of industrial automation and

instrumentation. export product: THERMOCOUPLES. In our group we chose "Export of

thermocouples", we chose it because we think that with our measuring instruments made by

hand, one by one by Colombian labour, we can create a very important business relationship

with this country. With our high quality labour we can offer the best industrial solutions. What

better way to start this experience than with a neighboring country like Ecuador?
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Product

What is a Thermocouple?

A thermocouple is a transducer formed by the union of two different metals that produces

a very small potential difference that is a function of the difference in temperature between one

of the extremes called the hot point, hot or measurement junction and the other called the cold

point. reference or cold junction.

Normally, industrial thermocouples are made of a stainless-steel tube or other material.

At one end of the tube is the union, and at the other the electrical terminal of the cables,

protected inside a round aluminum box (head).

What is the thermocouple used for?

Usually thermocouples are used in industrial instrumentation, it is used as temperature

sensors. They are inexpensive, interchangeable, have standard connectors, and are designed for

measuring a wide range of temperatures.

Figure 1

Image of a Thermocouple.
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Note: We point out the presentation of the product on which this project is working,

Taken from (SCRAM, 2021)

Once we got have all knowledge about our product, the next step is make an analysis

related taxes and duties that will be necessary for commercialize it, in order to avoid a negative

impact in international trade to this way make our company achieves a good position in Ecuador.

We started our thermocouple product with a tariff heading 9032.10.00.00 and with a demand of

22% aprox. and with the following market research (Global Trade Help Desk, 2021).

Market Study

Justification of the chosen country

Ecuador is a country with a fairly significant increase in its economy in the last few

years, based on the chosen product TERMOCUPLAS (tariff item number 9032.10.00.00,

Automatic instruments and devices: Thermostats), We can say that it is a viable product, and it

was chosen Due to the fact that it has a wide demand in the industrial and pharmaceutical sector,

and in general for measure temperature in different equipment. Furthermore, Ecuador is the

second country with the most potential for the commercialization of the product, being exported

by Colombia.
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Figure 2

Image of the product potentiality model.

Note: Reference of the potential of the product in some countries, including Ecuador. Taken

from (MARO, 2021)

Figure 3
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Note: Reference of values, Ecuador-Colombia bilateral trade, taken from (Trademap

Org, 2021)

The recent import growth of this tariff head in Ecuador, since 2016 for avalue of 4,287

million dollars until 2019 with 6,112 million dollars is something that confirm us the market is

not collapsed, is evident that there was a decline in 2020 due to the COVID-19 pandemic but it is

expected that the market will be reactivate from 2021, the CEPAL estimate that the Ecuador's

economy will grow 3% in 2021 and 2.9% in 2022. In addition, Colombia and Ecuador are part of

the CAN, which helps the integral and autonomous development of the Andina´s region and

improve the process of the exchange of goods between the countries, being a favorable point for

our product.

Ecuador presents an important growth in terms of the industrial sector being a great

commercial ally for us since it is estimated that its GDP will grow by 2.8% this year in which the

industrial sector is included indicating that in April of this year sales similar to those of 2018

were evidenced which is positive for our company and its growth.

As for the negotiation Colombia has a great advantage since our product price is very

competitive compared to other industries as well as the form of land transportation by trade

agreements we have with Ecuador as it handles a 0% tariff according to the agreement of 2015.

Company Thermo Comp.

Figure 4
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Company logo image.

Note. Thermo comp Company Logo, own creation.

Who 's ThermoComp?

ThermoComp is a service company specialized in the assembly of all types of

thermocouples and in the commercialization of measurement and control equipment.

What do we offer?

ThermoComp is an organization dedicated to the manufacture of thermocouples, in

addition to the commercialization of industrial instrumentation measurement and control

equipment, its primary objective is to ensure the quality of the products offered, in compliance

with legal and organizational requirements. and normative. Some of our services are:

Innovation in Thermocouples: We inspect the working conditions of a thermocouple

and rethink its design and functionality.

Calibration services and support in metrological management.

Equipment Management Training: We train the technical staff of our clients in the

handling of the different equipment and products.

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Technical Advice on Equipment: We visit our clients' facilities to provide advice when

selecting equipment for their needs.

Controllers and transmitters configuration: We program the different functions of the

controllers and transmitters to meet the specific requirements of our customers.

What 's our goal?

Here at ThermoComp we strive for continuous improvement of the environment, aimed

at reducing the environmental impact of our operations. The prevention and control of pollution

through activities focused on creating awareness to recycle.

Some of the products we offer:

Figure 5

Image of Thermocouple with Bayonet.

Note. Some of the products we offer, adapted by the authors of the project
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Thermocouple with Bayonet: It’s a thermocouple with spring, adapter and bayonet.

Suitable for measuring temperature especially in solids, sliding contact bearings and tools. Ideal

for the plastics and rubber industry.

Figure 6

Image of Thermocouple with Contact.

Note. Some of the products we offer, adapted by the authors of the project

Thermocouple with Contact: Ideal thermocouple for inspection and maintenance on

surfaces where the operator has easy access and direct contact. It has mini connectors that make

it compatible with any type of portable temperature indicator.

Figure 7
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Image of thermowell for high temperatures.

Note. Some of the products we offer, adapted by the authors of the project

Thermocouple with ceramic thermowell for high temperatures:

Thermocouples manufactured to measure extreme temperatures, withstands up to 1,700 °

C. Its high alumina bulb protects the internal thermocouple from different environments and

from mechanical and chemical damage.

Figure 8

Image of Flanged thermowell

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Note. Some of the products we offer, adapted by the authors of the project.

Flanged thermowell: Thanks to their resistant design, they are the first option to be used

in petrochemical industries according to the pressure rating. They can be supplied in any type of

rating and various types of material.

Distribution strategy and distribution channel.

In order to get a good distribution strategy, is needed to know the company with we

decided to negotiate. This is Coca-Cola company, the commercial sector that we chose to focus

is the private sector, the main demand of our product is industrial process that cover practically

two-thirds of the purchases of industrial automation equipment in the chosen country (Ecuador).

Our company has a wide capacity to manufacture thermocouples, raw material to manufacture

the product is very cheap, and we are constantly improving its manufacture. We enter the list of

suppliers of the company after a good telemarketing job, making appointments with the plant

engineers and knowing their necessities. Keeping in mind that the main function of our product

is to measure the temperature used in industrial processes (production of soda), we adapt to the
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client's needs depending on the type of process that is made. For this reason, our distribution

strategy is selective through a direct channel. This means that we take care of the delivery and

marketing of the product to the end customer, in this case to the company (Coca-Cola) without

any type of intermediary or distributor. Applying some characteristics of the selective

distribution strategy, which allows us sell to customers previously select who are going to make

use of our product, thus avoiding limiting the market with exclusivity to a single client. All of

this without leaving aside the postsale service regarding the product warranty, understanding

how important it is in the manufacturing processes, we will distribute our product to previously

selected clients in the industrial sector.

Figure 9

Company-client relationship image in direct distribution.

Note. Illustration direct distribution, Company-client relationship, taken from

(Dircomfidencial, 2021)
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For the right distribution of our product in the selected country (Ecuador) we must

comply with the requirements established by the Ecuadorian customs direction, among these

requirements are:

● Five (5) commercial invoices that must contain: FOB value, specific

freight charges (must be exactly the same for AWB) and additional charges. You must

also have a signed statement that says: "We declare under oath that all quantities, prices

and other details on this commercial invoice are accurate and true."

● Import permit, valid for 180 days, for all goods with a CIF value of US $

1,500 onwards. It must be obtained prior to shipment. The current value should not

exceed 10% of the import permit.

● Duplicate of the Certificate of Origin.

The CAE (corporación aduanera ecuatoriana) requires the following documents for the

entry of merchandise into Ecuadorian territory:

● Original or negotiable copy of the Transport Document.

● Original Commercial Invoice

● Andean Declaration of Value (B - DAV)

● Insurance policy The processing time is estimated at 3 to 4 days.

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MARKETING STRATEGY

Thermocomp has excellent quality products that meet the needs required by our

customers as it allows us to optimize the temperature measurement in the industrial sector, it is a

spectacular product because they are easy to use and easily accessible tools.

We have a competitive price in the market since we are among the ranges according to

our niche market such as Ecuador, as a strategy we have to use a suitable accompaniment with

our customers in terms of product management and advice always seeking customer satisfaction

and building trust, we generate regular visits to our customers to build customer loyalty and seek

to attract new customers by offering discounts for referrals in the sector.

Our company has a direct distribution which gives our customers the confidence that

their merchandise will arrive in optimal conditions, always looking for quality in terms of service

and attention of employees who are responsible for bringing the product to our end customer in

the time and condition stipulated.

to promote our product, we will carry out advertising campaigns through social networks,

online stores since after the post covid 19 the trend of shopping and digital channels increased

significantly, we will seek partnerships with local entrepreneurs for the realization of the

advertising of our product and implement satisfaction surveys to our customers always seeking

to use environmentally friendly products to develop both the packaging and physical advertising.

Price:

As we know, thermocouples are the most used temperature sensors in the world, in

Thermocomp, we offer variety in our product, at a low cost which makes us competitive in the
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industrial sector, we also perform the manufacturing process and we take care of industrial

temperature measurements ranging from -200 to over 1450°C ensuring that they can be used at

very low temperatures especially in applications where their accuracy is adequate.

Therefore in this process we require certain inputs, so that our staff can develop the

thermocouple according to what our customer requires, and taking into account the wide

temperature ranges and meet the installation requirements.

Thermocouple materials: thermocouple wires are chosen to produce a large electromotive

force that varies linearly with temperature.

Figure 10

Price image.
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Note: Values related to input costs, own creation of the authors.

This table allows us to show the necessary expenses for the manufacturing process of our

product, in which as an additional expense we have the labor force, which is established by our

company according to the production.

The thermocouples are priced at $40.000 per unit, plus shipping cost which may vary

according to the number of units requested. The protective tube for the thermocouple is included

at no additional cost. This tube is made of a wide variety of materials, which is delivered

depending on the use that will be given to them, achieving a longer useful life for the product.

In addition, we ensure that the thermocouples are manufactured with good resistance to

oxidation and the temperature range to be used, designed to be able to develop an electromotive

force per degree of temperature change that can be detected by standard measuring instruments,

and physically strong enough to withstand high temperatures, rapid temperature changes and the

effect of corrosive and reducing atmospheres.

Figure 11

Image Publicity Strategy

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Note: Image of advertising strategy icons, adapted by the authors of the project.

Publicity Strategy at Thermocomp:

Here at Thermocomp our priority is not only acquiring new buyers but also guaranteeing

the fidelity of our customers, That’s why we not only offer or publish our products through our

website but we also like to create a satisfying experience with all of our customers that makes

them want to continue purchasing their items with us.

We have a strong publicity strategy to try to get to all those who might be interested in

our products and are related with the industry in which we work for, some of the publicity

strategies we use are the following:

Email Marketing: We have a database of potential customers and buyers that might be

interested in our products. We email our catalog which contains a questionnaire to select the

products they most likely will be interested in and fit their necessities along with a purchase

order and additional contact details if they have any further questions about our products.
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Social Ads: Social media ads allow you to reach a potential audience of millions of users

and segment with great precision to reach the target audience. With the algorithms used by social

networks, we can target the public related to our industry and locate potential clients to whom we

can offer our products. It is also important for us to get clients that are compatible with our

mission of a greener planet.

SEM: Paid advertising on search engines like Google (SEM) consists of positioning ads

targeting certain keywords. In this way, when a user searches for a term related to our brand, our

ad can appear in a prominent position among the results.

SEM is one of the most popular advertising strategies in the digital environment, since it

allows direct targeting of users with a high purchase intention based on their searches. In

addition, it is also a very versatile strategy, since it allows you to reach very different audiences

and phases of the purchase process.

Discounts and Promotions: Discounts and promotions are based on offering a product or

service at a lower price than usual for a limited time. In this way, a sense of urgency is generated

that encourages users to buy.

This advertising strategy can be very useful to generate a critical mass of clients and we

apply it mainly in the launch of a new product or to boost sales in the short term.

Customer Fidelity: This is probably our main and most important strategy, as we like to

offer our buyers a whole experience when making businesses with us. Whenever we get a
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potential customer reach out to us interested in making a deal, we offer personalized assistance

based on their needs and any special requirements they might have, additionally we offer a

monitoring service if they purchase our products for a certain amount of time. The objective is to

generate a long-term relationship with the brand and improve the customer's lifetime value, that

is, the amount of benefits generated during the time they remain with Thermocomp. And in

return, this allows us to reduce the costs of acquiring new customers.

Our Website: Majority of the publicity strategies we use contain a link to our main

website in which consumers can view all our available products, speak with a live representative

who may provide any assistance, prices, compare between products and their characteristics to

make the best choice and a little history on our company's progress.

Packing and Packaging

Figure 12

Packing and packaging image

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Note: Image of packaging and packaging, adapted by the authors of the project.

Here at Thermocomp we bet on a green and plastic-free future, that’s why our

thermocouples are all packed and stuffed using regular kraft paper for the package and waxed

kraft paper for the packaging

Kraft Paper for Package:

Benefits: Kraft paper reduces damage, quick to use (because you don't have to wait for it

to inflate), and you save warehouse space as it takes up much less space than any other air-filled

packaging.

It's easy to recycle, it comes from sustainable resources, it's easy to use, and it reduces

your carbon footprint.

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Waxed kraft Paper for packing:

Benefits:

High performance: We chose the waxed kraft paper as it’s, recommended for metal

parts used in the metallurgical sectors for the protection of loose parts, bearings. Coated with

paraffin that gives it anti-corrosive properties guaranteeing the safety or our thermocouples

● 95gr / m² quality paper, the thickest on the market

● Greaseproof: Made of kraft paper coated with paraffin on both

sides.

Customer type

Before create a marketing strategy, it is important to know our type of customer, this in

order to adjust a strategy that allow us assist it in a correct way, keeping in mind the different

types of customers, who the business or company is directed.

Our product will be target to the industrial sector, especially automation, because we

make a complete a transformation of these industrial instruments and turn them into the final

product (thermocouple).

The industrial sector is a sector whose activity is to transform raw materials into products

for final or intermediate consumption. The vast majority of industrial activities are within the

secondary sector.

The very concept of industry always implies a productive process, which will use a

certain amount of labor and capital, and which will be based on the transformation of raw

materials.
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We have as a final customer in this project the Coca-cola company, a very well

established company with solid marketing strategies, our product supply the requirements of this

customer for the transformation of raw materials into its main product (soft drinks), as this is a

customer established in the market and based on the acronym MAN, our final customer is a

media customer where the competition to enter its list of suppliers is very difficult, therefore it is

necessary to have loyalty and fulfill the constant needs of the same, making treatment direct with

engineers and instrumentalists.

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References.

● DIAN (1985, 1 febrero). Dirección de Impuestos y Aduanas

Nacionales - DIAN. Portales Dian. Consultado el 16 de septiembre de 2021.

https://www.dian.gov.co/

● Exportaciones de 903210 (2021). Centro de comercio

Internacional, Naciones unidas y Organización Mundial del Comercio. Global

Trade. Consultado el 16 de septiembre de 2021.

https://globaltradehelpdesk.org/es/export-903210-from-co-to-ec/market-

overview.

● Exportaciones de 903210 (2021). Centro de comercio

Internacional, Naciones unidas y Organización Mundial del Comercio.

Trademap. Consultado el 17 de septiembre de 2021.

https://www.trademap.org/Bilateral

● I.T.C (1999,2019). Internacional Trade Centre. Trademap.

Consultado el 17 de septiembre de 2021. https://www.trademap.org/Index.aspx

● IMAGENES SIN DERECHOS DE AUTOR

● M. (1988, 1 enero). Mapa Regional de Oportunidades. Colombia

productiva. MARO. Consultado el 17 de septiembre de 2021.

https://www.maro.com.co/consulta-general/bienes/

● Mercados, I. (1998, 30 mayo). Ecuador: Economía y demografía

2021. Datos Macro. Consultado el 17 de septiembre de 2021.

https://datosmacro.expansion.com/paises/ecuador.
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● Oñate, S. (2021, 2 junio). Modesto crecimiento en 44 actividades

económicas. El Comercio. Consultado el 17 de septiembre de 2021.

https://www.elcomercio.com/actualidad/negocios/modesto-crecimiento-

actividades-economicas-ecuador.html

● Procolombia. (2021). Perfil logístico de exportación a Ecuador.

Procolombia. Consultado el 04 de octubre de 2021.

https://procolombia.co/herramientas/perfiles-logisticos-de-exportacion-por-

pais/perfil-logistico-de-exportacion-ecuador

● Beetrack. (2021). Estrategias de Distribución. Beetrack.

Consultado el 04 de octubre de 2021.

https://www.beetrack.com/es/blog/estrategias-de-distribucion-ejemplos

● Global Trade Help Desk. (2021, 09 26). Global Trade Help Desk.

Retrieved from https://globaltradehelpdesk.org/es/export-903210-from-co-to-

ec/market-overview

 SCRAM. (2021, 09 17). SCRAM. Retrieved from SCRAM.COM:

http://www.scram.com.ar/productos/termocuplas-y%20termorresistencias/termocuplas-y-

termorresistencias/

 Dircomfidencial. (26 de 09 de 2021). Dircomfidencial. Obtenido de

Dircomfidencial: https://dircomfidencial.com/diccionario/distribucion-directa-e-indirecta-

20161022-1707/